On Wednesday, Aviva Investors said that it opposed a $2.3 billion plan by Vedanta to buy out minority shareholders in Cairn India because the deal failed to deliver sufficient value.

Aviva Investors, part of insurer Aviva Plc said in a statement, “As long-term investors, we believe that the timing of this deal is opportunistic and materially undervalues Cairn India, its current reserves and future prospects”.

“We are also concerned there is a risk of the Vedanta Group misallocating capital should its integration of Cairn India prove successful,” it said.

“With high levels of debt and an aggressive capital expenditure programme, we fear the Vedanta Group would prioritise its immediate needs over the long-term potential we believe exists at Cairn India,” it added.

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